|The Tax Publishers2020 TaxPub(DT) 4233 (Guj-HC)
INCOME TAX ACT, 1961
Excess stock found at assessee's premises during the course of survey but same belonging to third parties could not be subjected to addition in assessee's hands.
Survey - Addition to income - Excess stock found at assessee's premises belonging to third parties -
Excess stock of 22,115 kg. was found during the course of survey under section 133A at assessee's business premises. Assessee submitted that excess stocks belonged to third party and had been sent to assessee for job work. AO rejected explanation of assessee and made addition of value of excess stock. CIT(A) deleted addition Tribunal reversed this and sustained addition made by AO. Assessee challenged this by way of appeal filed before High Court. Held: AO has recorded in the assessment order that Bill Nos. 5 and 6 were found at the time of survey which pertained to goods of M/s. Shubham Enterprise received by assessee for job work. CIT(A) after considering such facts, came to the conclusion that goods in question belonged to M/s. Shubham Enterprise, which was also confirmed by both the parties. Tribunal being the final fact finding authority was required to pass order after considering materials on record. However, Tribunal, failed to consider relevant documents on record and had taken into consideration the irrelevant facts with regard to onus of assessee to actual transportation of goods in question, payment of octroi, etc., and thereby discarded findings of facts arrived at by CIT(A) based upon material on record resulting into a perverse order. Accordingly, order of Tribunal was set aside.
FAVOUR : In assessee's favour.
A.Y. : 2001-02
IN THE GUJARAT HIGH COURT
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